BSP contributing to MIF won’t weaken its mandate: Diokno

Finance Secretary Benjamin Diokno on Friday allayed fears that the Bangko Sentral ng Pilipinas (BSP) may find it difficult to perform its price and financial stability mandate once its dividends are allocated to the proposed Maharlika Investment Fund (MIF).

“BSP contribution to MIF is not a threat to financial stability,” Diokno, who is also a former BSP governor, said in a statement.

Former BSP senior deputy governor Diwa Guinigundo sounded the alarm that if the central bank is weak in terms of finances, it might be difficult for it to bail out distressed banks, which would then affect its mandate of safeguarding prices and keeping the financial system healthy.

Diokno, however, said that the BSP’s financial condition “now is much better than when its revised charter was being deliberated upon.”

“In addition, the BSP was granted additional tools to conduct its primary mandates,” he said.

The Regional Comprehensive Economic Partnership (RCEP) has finally entered into force in the Philippines on Friday, over two years since participating countries concluded the free trade deal in November 2020.

The Department of Trade and Industry (DTI), the country’s lead agency during the RCEP negotiations, urged Philippine enterprises to make the most of the new free trade agreement (FTA) of the country.

“RCEP has a big promise to the country in terms of being able to expand our trade with our partners in RCEP,” Trade Secretary Alfredo Pascual told the Philippine News Agency (PNA) on the sidelines of a forum in Taguig City Thursday.

Pascual said his office would be active in promoting to Philippine-based enterprises, particularly the small and medium enterprises (SMEs), the benefits available to them under RCEP.

“I enjoin, I encourage, I ask our Philippines businesses to make full use of the potential gains in RCEP,” he added.

RCEP would also allow Filipino SMEs to be integrated in the global value chain, and trade with 14 other countries at lower or zero tariff rates, he said.

RCEP took effect in the country 60 days since the Philippine government deposited the instrument of ratification with the ASEAN Secretary-General last April 3.

This, as the Senate concurred with RCEP ratification last Feb. 21.

The Philippines is the last country among 15 RCEP members that implemented the FTA amid concerns particularly aired by players in the agriculture sector.

Earlier, Pascual emphasized that RCEP would not lead to an influx of imported agricultural products.

The Executive Order (EO) implementing the RCEP commitments has maintained preferential tariffs of 98.1 percent of the 1,718 agricultural tariff lines.

On the other hand, 82.7 percent of the 8,102 industrial tariff lines do not have any changes.

The EO also noted that there are only 105 agricultural tariff lines in the pipeline that will have adjustments in tariff rates, but only after 20 years since the RCEP